NAMIBIA COUNTRY PRESENTATION by BONAVENTURA HINDA COMMERCIAL COUNSELLOR EMBASSY OF THE REPUBLIC OF NAMIBIA France, Italy, Portugal , Spain WEDNESDAY, 22 NOVEMBER 2017 LISBON, PORTUGAL
Presentation Outline Country Profile Macroeconomic Overview Trade Investment Opportunities Investment Climate Namibian Embassy @ Your Service
Country Profile Area: 824, 292 square kilometres Population 2.4 million (2016) Currency: N$ = € 16.41 (17/11/17) Language: English is the official language Regions: 14 Regions Democratic Government: General Elections every 5 years Next Elections, November 2019 President: H. E. Dr. Hage Geingob
Economic Overview IMF World Economic Outlook October 2017 GDP Growth by Eco Zone GDP Growth by Country GDP Growth by Eco Zone GDP Growth by Country 6 8 5 4.9 5 7 4.6 4.3 6 3.7 4 3.6 3.5 3.5 5 3.2 3 2.6 2.6 4 2.1 1.9 3 1.8 2 1.4 2 1 1 0 0 2016 2017 2018 World Eurozone Sub-Sahara Middle East Emerging USA China Germany France -1 Italy Spain Portugal RSA 2016 2017 2018 NAM ANG -2
Economic Overview - Economic Indicators ❖ GDP at Current Prices N$ 159 105 (2016) and N$ 168 286 (2017*) ❖ Real GDP Growth - (2,1% for 2017) Bank of Namibia Economic Outlook – July 2017] ❖ NCPI 5.2 % (Oct - 2017) ❖ Repo Rate 6,75% ❖ Prime Rate 10.50% ❖ Gini Coefficient 0.58% Unemployment Rate ❖ 28.1% (2014)
Economic Overview – Sector Contribution to GDP – 2016 ❖ Primary Sector – 17,6% Agriculture and Forestry Mining and Quarrying Fisheries ❖ Secondary Sector – 17,4% Manufacturing Construction Utilities (Water & Electricity) ❖ Tertiary Sector – 57.9% Wholesale & Retail Hotels & Restaurants Transport & Communication Financial Intermediation Real Estate & Business Services Government
Trade ( Small Market, Conducive Climate ) Namibia gateway to SADC Region (Market Access) Significance of WB Port to Region Market Access through TA ❖ Market Access through Trade Agreements - Member of SACU & SADC - Tripartite Agreement (SADC, ECA, COMESA) - Preferential trade agreements with the EU, USA, EFTA, MERCOSUR ❖ Efficient Cargo Clearance & Transit - Angola (3-5 days) - Botswana (2 days) - DRC (5-6 days) - Malawi (5-6 days) - South Africa (2 days) - Zambia (3-4 days ) ❖ Direct Shipping Lines - Europe, East Asia, North America, Middle East
Trade Top 10 Trading Partners 2016 Export Destination Import Destination N$ N$ (billion) (billion) Switzerland 13.3 South Africa 59.1 South Africa 11.4 Botswana 6.7 Botswana 10 Zambia 4.0 Zambia 4.4 China 2.8 EPZ 4.4 Norway 2.5 Spain 3.1 Bahamas 2.4 Italy 2.8 India 2.6 China 2.4 USA 1.8 Belgium 2.2 Italy 1.7 Norway 2.2 EPZ 1.4 RoW 14.7 RoW 16.0
Top 10 Namibian Exports and Imports Main Exports Main Imports ❖ Manufactured Products ❖ Chem, Rubber, Plastic ❖ Diamonds ❖ Transport Equipment ❖ Metal Ores include Uranium ❖ Machinery and Equipment ❖ Fish and Marine Products ❖ Refined Petroleum ❖ Beverages ❖ Food Prod/Consumables ❖ Refined Zinc ❖ Textile, Clothing, Leather ❖ Live Animals ❖ Fabricated and Basic Metal ❖ Meat and Processed Meat ❖ Non-metallic Mineral ❖ Copper cathodes ❖ Electrical Machinery ❖ Crops, Fruit & Veg, Forestry ❖ Paper Product
Trade France, Italy, Portugal, Spain – 2016 (Source: Namibia Statistics Agency) Exports from Namibia Imports from 4 Destinations Export Value - US$ (mil) Import Value - US$ (mil) 49 5,3 13,2 94,7 33,8 185,6 181,6 69 France Italy Spain Portugal France Italy Spain Portugal
Trade Main Exports to France, Italy, Spain, Portugal • Exports: fish, plants & parts of plants used in perfumery • Imports: swine, chocolates, wine, alcohol/spirits, engine parts, machinery for liquid gas France • Exports: bovine, fish, table grapes, marble/granite, zinc, raw hides, wet blue, copper • Imports: olive oil, veneered wood, ceramic tiles, fork lifts/handling equipment, industrial machinery e.g food Italy and beverages and leather processing • Exports: fish, grapes • Imports: olive oil, cereal, wine, textile, iron/steel structures, machinery Portugal • Exports: fish, crustaceans mollusc, table grapes, marble/granite • Imports: swine, fish, olive oil, rubber tyres, carton/boxes, footwear, iron/steel, engine parts, refrigerators, Spain mobile cranes, industrial equipment
What drives FDI? Current size or expected growth of host market: SACU, SADC, Tripartite, ✓ EU-EPA, AGOA, Mercosur Market Seeking Investors Interest in raw materials: minerals (diamond, uranium, zinc, copper, gold, lead, fluorspar) sea salt, dimension stones, hides& ✓ skin, sun(solar), semi precious stones, indigenous plants with Resource Seeking Investors high medicinal value, Taking advantage of low cost, high productivity, economies of ✓ Efficiency Seeking Investors scale ✓ Special skills/technology, geographic location (Walvis Bay Strategic Asset Seeking Port)
Location Benchmarking Determinants • Policy Framework for FDI: political stability, security, investment policies, laws and regulations including protection of investments, rules on entry and operations of foreign firms and tax regimes; • Economic Determinants: local and regional market characteristics, availability and quality of raw materials, physical infrastructure, technical and innovatory capacities, cost of labour, land, availability and cost of energy and other inputs; • Business Facilitation: investment promotion, including practical assistance during and after the investment, incentives and social amenities.
Investment Opportunities – Priority Sectors National Development Plans Priority Growth Sectors ❖ Agriculture ❖ Manufacturing ❖ Transport and Logistics ❖ Tourism ❖ Mining & Mineral Beneficiation ❖ Ocean Economy Enablers: ❖ Education, skills development and training NDP 5 ❖ Health ❖ Infrastructure ( Energy, Water, Roads etc) 2017 – 2022 ❖ ICT and Innovation June 2012- May 2017 Launched – 31 May 2017 ❖ Financial Infrastructure ❖ Export capacity and greater regional integration ❖ Research and Innovation - Namibia Industrial Policy 2012 - Growth at Home Strategy 2014 - Harambee Prosperity Plan 2016 - NEEEF Bill – Due in second half of 2017
Investment Opportunities – Portuguese Market Agriculture & Agro-processing ( olive & grape plantation and processing) Manufacturing (leather processing, building material, automotive accessories, pharmaceuticals etc.) Logistics and Transport (opportunities along 4 transport corridors from WB into SADC Region - trucking companies, truck depots, filling stations etc) Skills Development and Training (Priority Sectors - tourism, agriculture, mineral beneficiation, partnerships in university & technical colleges) Ocean Economy (boat cruises, marine aquaculture, offshore renewable energy, R&D-sustainable use of ocean Technological Advancement in Priority Sectors
Investment Opportunities Walvis Bay Port Expansion Project – Completion by 2019 Walvis By Port: ❖ Current TEU throughput per annum – 350 000 New Terminal Opportunities: - Additional of 600m quay length to existing 1500m - Additional 650 000 TEU p.a - Additional capacity for containers, bulk, rig repair, dry dock and floating dock facilities etc. - Warehousing Facilities - Road Freight Trucking Companies - Truck port for Walvis Bay
Investment Opportunities SADC Gateway Port - New Current Port 105 hectares 60 year old tanker jetty New Port 1330 hectares New tanker jetty
Investment Opportunities – JV with Namibian Project Promoters Agriculture and Tourism Energy - Commercial Cattle Feedlot - Concentrated Solar Power with Thermal and Storage - Diyondo/Mukwe Agriculture & Tourism Project - Electricity Generation through Biomass Harvesting Infrastructure - Otavi Truckstop, Industrial and Logistics - Community Rail Service between Windhoek Central & Manufacturing Suburbs - Bitumen Manufacturing - Charcoal Production and Processing Mixed-use Property - Kaptau Paper Packaging - Sungate City ( Hosea Kutako Int Airport ) - Otavi Rebar Manufacturing - Ongos Monte Christo City ( Windhoek )
Success Stories - FDI flows into Namibia Company Name Investment Year 1. Industrials Almentaries de Navara (Spain) Asparagus Processing Plant 2017 2. Namibia Italy Gems Cut (Italy) Gemstone Processing Plant 3. Innosun (France) Solar Power Plant 2016 4. Banco Atlantico Financial Services 2015 5. Eurobic (Banco BIC) Financial Services 2016 6. Safari Investments (South Africa) Retail (Waterfront/Mall) 2016 7. Atterbury Group (South Africa) Retail (First Mall in WB) 2017 8. Ohorongo Cement (Germany) Cement Factory 2011 9. Rolls Royce (United Kingdom) Marine Service/Shipyard 2011 Repair Centre 10. Al Dahra Agriculture (United Arab Emirates) Date & Grape Plantations 2011
Investment Climate – Legal Framework ❖ Investment Act – Promulgated on 31 August 2016 ( Reviewed) ❖ Foreign Investment Act No. 27 of 1990 - Protection of Investments - Liberal Investment Regime ( farm land, 51% Namibian Ownership/lease ) - Repatriation of Profits - Liberal Foreign Exchange Controls ❖ Export Processing Zone Regime Act No. 09 of 1995 - Tax and Duty Free (must export 70-100% of produce) - Can locate anywhere in Namibia - 18 operational (minerals, automotive, household plastics)
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